Assignment One: Overview of the Organization

Assignment One: Overview of the Organization

by

Latasha Nero

ORGL 8750 CRN 24220

Strategic Planning

Nova Southeastern University

September 24, 2023

Assignment One: Overview of the Organization

Organization Introduction

State Farm Mutual Automobile Insurance Company (State Farm Mutual or the company) is a mutual insurance company that is also the parent company of several wholly owned subsidiaries that provide property and life insurance, banking products, and mutual funds. My role within the organization is a Claim Specialist Injury. There are several ways that State Farm can make a difference within the industry. Additionally, there are areas that should be changed within the organization. The main area that I would love to see change is how recruitment, training, and development are done. I feel that there is room for improvement based on my experience through the application process, recruitment process, and training process. I plan to investigate by providing an overview of the background and history, vision, mission and value statements, reputation, sustainability, and SWOT analysis which outlines their internal and external factors.

Organization Background and History

State Farm Mutual Automobile Insurance Company was formed to offer low-cost automobile insurance to farmers in Illinois. In 1922, State Farm Mutual Automobile Insurance Company was originated by George Mecherle.

Organization Vision, Mission, and Value Statements

Every organization should have a mission, vision, and value statement. Each statement gives the consumer (internally and externally) an idea of the direction of where the organization is and trying to be.

Organizational Vision Statement

The vision statement within the organization intends to serve stakeholders and focuses on educating communities within South Florida (see Appendix A).

Organizational Mission Statement

A mission statement The mission statement within the organization intends to serve stakeholders and focuses on educating communities within South Florida (see Appendix B). Organizational Value Statement

The value statement within the organization intends to serve stakeholders and focuses on educating communities within South Florida (see Appendix C).

Organizational Reputation

Reputation is a status of good or bad. Reputation is considered an intangible asset (Peshev, 2020).

Organizational Sustainability

Sustainability is the ability to preserve or support a progression over time. Sustainability is separated into three core concepts which are economic, environmental, and social.

SWOT Analysis

Every organization needs to assess and complete an internal and external assessment of their business to create a strategic plan. SWOT analysis stands for strengths, weaknesses, opportunities, and threats.

Table 1

List of Strength, Weakness, Opportunity, and Threat Factors

Strengths

1 Brand Recognition

2 Reputation

3 Product Selection

4 Strong Market Position

5 Customer Loyalty

Weaknesses

1 Recruitment Process

2 Training

3 Mutual Status

4 Inability to improve underwriting operations

5 Rates

Opportunities

1 Aging Population in the US

2 Growth of Global Property and Casualty Insurance Market

3 Extension of Terrorism Risk Insurance (TRIA)

4 Utilization of New Technology

5 Threats

1 Natural Disasters

2 Litigation

3 Auto Accidents

4 Workload

5 Government Regulations

Conclusion

In conclusion, State Farm is headed in the right direction but there is always room for improvement. While evaluating the organizational structure of State Farm, I have learned that what started as something small has become a household brand. Being able to create a brand identity and utilizing it can produce great results. State Farm Mutual Automobile Insurance Company is one of the top ten global insurance companies by revenue.

References

Blades, D. (2023). U.S. Personal Auto Results Headed the Wrong Way. Is a U-Turn Possible?Carrier Management,10(2), 2123.

David, F. R., Creek, S. A., & David, F. R. (2019). What is the Key to Effective SWOT Analysis, Including AQCD Factors.SAM Advanced Management Journal (07497075),84(1), 2535.

Fisk, M. C., & Feeley, J. (2018). State Farm Faces $8.5 Billion Claim 19 Years After Damage Award.Bloomberg.Com, N.PAG.

Gabler, C. B., Landers, V. M., & Itani, O. S. (2023). Sustainability and professional sales: a review and future research agenda.Journal of Personal Selling & Sales Management, 118. https://doi-org.ezproxylocal.library.nova.edu/10.1080/08853134.2023.2244675

Honka, E., & Chintagunta, P. (2017). Simultaneous or Sequential? Search Strategies in the U.S. Auto Insurance Industry.Marketing Science,36(1), 2142. https://doi-org.ezproxylocal.library.nova.edu/10.1287/mksc.2016.0995

Iannucci, T., & Hutchinson, L. (2021). Strategic Planning and Plan Sustainability: Part One.Benefits Magazine,58(6), 4249.

MacLeod, L. (2016). Mission, Vision and Values Statements: The Physician Leaders Role.Physician Leadership Journal,3(5), 1825.

Maheshwari, R. (2023, August 24). Advantages of artificial intelligence (AI) in 2023. Forbes. https://www.forbes.com/advisor/in/business/software/advantages-of-ai/

Murphy, S. P., & Taylor, P. J. (2018). A Boards Mission, Vision & Values: Trustees need to define their own obligations and aspirations to build a strong culture.Trustee,71(3), 57.

Peshev, N. (2020). Reputation as an Intangible Asset.Izesstia, Journal of the Union of Scientists - Varna, Economic Sciences Series,9(1), 8087. https://doi-org.ezproxylocal.library.nova.edu/10.36997/IJUSV-ESS/2020.9.1.80

Peshev, N. (2020). Differing Reputation from Brand, Image and Identity.Izesstia, Journal of the Union of Scientists - Varna, Economic Sciences Series,9(2), 169175. https://doi-org.ezproxylocal.library.nova.edu/10.36997/IJUSV-ESS/2020.9.2.169

Salnikova, E., Strizhakova, Y., & Coulter, R. A. (2022). Engaging Consumers with Environmental Sustainability Initiatives: Consumer GlobalLocal Identity and Global Brand Messaging.Journal of Marketing Research (JMR),59(5), 9831001. https://doi-org.ezproxylocal.library.nova.edu/10.1177/00222437221078522

State Farm. (n.d.). Company overview. https://www.statefarm.com/about-us/company-overview

West, D. M., & Allen, J. R. (2018, April 24). How artificial intelligence is transforming the world. Brookings. https://www.brookings.edu/articles/how-artificial-intelligence-is-transforming-the-world/

Appendix A

Organization Vision Statement

Our vision for the future is to be the customer's first and best choice in the products and services we provide. We will continue to be the leader in the insurance industry and we will become a leader in the financial services arena. Our customers' needs will determine our path. Our values will guide us (State Farm, n.d.).

Appendix B

Organizational Mission Statement

The State Farm mission is to help people manage the risks of everyday life, recover from the unexpected and realize their dreams (State Farm, n.d.).

Appendix C

Organizational Value Statement

We are people who make it our business to be like a good neighbor; who built a premier company by selling and keeping promises through our marketing partnership; who bring diverse talents and experiences to our work of serving the State Farm customer (State Farm, n.d.).

Our success is built on a foundation of shared values quality service and relationships, integrity and financial strength (State Farm, n.d.).